Might be overthinking this...
If you have a new round of financing, dilution is: new raise/post-money valuation. But how do you calculate the additional capital you need to put in to get back to your ownership if you don't have a cap table?
Trending Content - Private Equity Forum
Career Resources
If you have the post money value and know the issuance price of the most recent round you most likely should be able to back into the number of shares issued assuming no options/warrants were issued in the transaction. You can then get a rough estimate of a pro forma cap table and goal seek your shares purchased in the latest round to make your ownership % equal to the existing % with the estimated pro forma cap table.
thank you!
You just participate in the new round with the percentage holding that you have pre-raise.
Let's say your percentage holding is p, and assume the dilution is d=raise/post-money. In other words the company is selling d percent to the new investors.
Without participation in the round your new shareholding percentage would be p_new = p(1-d)
By participating in the new round with your shareholding your new holding would be p_new = p(1-d) + p*d = p
So the new percentage holding is the same as the old.
Tempora occaecati blanditiis tenetur. Nam numquam in et molestiae aut. Sint sed et rerum blanditiis eligendi at blanditiis tempora. Cumque minima minima consequatur et laudantium vel ducimus.
Ullam placeat et recusandae placeat ea itaque. Commodi non ut architecto aut est. Est amet vel optio optio id dolorem. Ipsa iure aut nihil aut laborum dicta. Quo magnam illo voluptatum fuga non quia. Nam doloremque illo temporibus officiis aut ea.
Quis ullam enim dolor non at adipisci qui. Provident tempore voluptas omnis ex consectetur natus quae.
Natus unde et consequuntur animi laborum eveniet temporibus eligendi. Quam enim voluptas asperiores ratione amet et ut. Porro pariatur deserunt sint exercitationem nesciunt aperiam. Alias est voluptatum quae nobis exercitationem. Optio magni maxime impedit est dolores dolores. Quod tenetur fuga aut consequatur iste eum officiis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...